SALESFORCE-LOYALTY-MANAGEMENT practice question 11 of 25

A sports clothing and accessories retailer is setting up a new Loyalty program. The company wants an effective way to create urgency in its Loyalty…

Domain Loyalty Program Design and Setup

A sports clothing and accessories retailer is setting up a new Loyalty program. The company wants an effective way to create urgency in its Loyalty program members to return to purchase and redeem their points within a specified period. The entire points balance expires if a member's last activity, including any purchase or points redemption, reaches 18 months. What steps should a Loyalty Consultant follow to meet the retailer's requirement when implementing the new Loyalty program?

Answer options

A: Set up a Non-Qualifying Points currency and apply the expiration model 'Fixed Model'

B: Set up a Qualifying Points currency and apply the expiration model 'Activity Model'

C: Set up a Non-Qualifying Points currency, apply the expiration model 'Activity Model' Correct answer

D: Set up a Qualifying Points currency and apply the expiration model 'Fixed Model'

Correct Answer:

C. Set up a Non-Qualifying Points currency, apply the expiration model 'Activity Model'

Explanation

The requirement is to expire a member's entire points balance if their last activity, such as a purchase or redemption, was 18 months ago. This points expiration logic is based on member inactivity. In Salesforce Loyalty Management, Non-Qualifying Points are the currency type used for redemption. The 'Activity Model' for point expiration is designed specifically for this use case; it expires the member's full points balance after a defined period of inactivity. A new qualifying activity resets the expiration timeline, creating the urgency the retailer desires.

Why Incorrect

A. Set up a Non-Qualifying Points currency and apply the expiration model 'Fixed Model' The 'Fixed Model' expires points a set duration after they are earned, not based on overall member inactivity. This does not meet the requirement.
B. Set up a Qualifying Points currency and apply the expiration model 'Activity Model' Qualifying Points are used to determine a member's tier status, not for redemption. The scenario describes points that members redeem.
D. Set up a Qualifying Points currency and apply the expiration model 'Fixed Model' This is incorrect as Qualifying Points are for tier status, and the 'Fixed Model' does not expire points based on member inactivity.

References

1. Salesforce Help, Topic: Loyalty Program Currencies.

Section: This document distinguishes between the two point types. It states, "Non-qualifying points are redeemable for rewards... Qualifying points contribute to a member’s tier status." This supports the use of Non-Qualifying Points for the scenario.

2. Salesforce Help, Topic: Set Up Point Expiration for a Loyalty Program.

Section: This document details the expiration models. It defines the Activity Model as: "All non-qualifying points in a member’s balance expire if the member is inactive for a specified period." This directly matches the retailer's requirement. It defines the Fixed Model as: "Non-qualifying points expire a specified period after they are credited to a member," which is incorrect for this scenario.

Keep practicing

Take the free SALESFORCE-LOYALTY-MANAGEMENT practice test

Ten exam-style questions with answers and explanations, plus the exam facts and study guides.

Start the free practice test